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201304 Construct a short-term financial plan for Springfield Snowboards based on its expansion opportunity described in the Positive Cash Flow Shocks part of Section 20.1.

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201304 Construct a short-term financial plan for Springfield Snowboards based on its expansion opportunity described in the "Positive Cash Flow Shocks part of Section 20.1. Base the plan on the following table which forecasts additional capital expenditures, marketing (SG&A), and working capital in Q1 and 02 along with higher sales in 02-04. Assume that Springfield ends 2014 with $1.03 million in cash and that its bank will offer it a short-term loan at the rate 2.75% per quarter. Assume that the minimum cash balance to be maintained is $480,000. Complete the cash budget based on the assumptions of the problem. (Round to the nearest integer) Cash Balance and Short-Term Financing (5000) 201301 201302 201303 Starting Cash Balance Charge in Cash and Equivalents Minimum Cash Balance Surplus (Deficit) Relative to Minimum S Increase (Decrease) in Short-Term Financing $ Eesting Short-term Financing $ Total Short-term Financing $ Ending Cash Balance $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ i Data Table 2012Q4 2013Q1 2013Q2 2013Q3 2013Q4 4,548 2,956 453 1,139 460 679 238 441 5,150 3,348 1,000 802 500 302 106 196 6,000 3,900 650 1,450 450 1,000 350 650 6,100 3,965 700 1,435 450 985 345 640 6,050 3,933 550 1,435 450 985 345 640 Quarter Income Statement ($000) Sales Cost of Goods Sold Selling. Gen., and Admin. EBITDA Depreciation EBIT Taxes Net Income Statement of Cash Flow ($000) Net Income Depreciation Changes in Working Capital: Accounts Receivable Inventory Accounts Payable Cash from Operating Act. Capital Expenditures Other Investments Cash from Investing Act. Net Borrowing 196 500 650 450 640 450 640 450 - 140 - 300 0 0 54 610 - 1,450 0 - 1,450 0 105 905 -515 0 --515 0 0 1,090 -525 0 -525 0 d 0 1,090 - 525 0 -525 0 Print Done - 1,450 0 Cash from Investing Act. Net Borrowing Dividends Capital Contributions Cash from Financing Act. Change in Cash Equiv. 0 0 0 - 840 -515 0 0 0 0 390 -525 0 0 0 0 565 -525 0 0 0 0 565

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